Saturday, 14 February 2015

CBI arrests Deccan Chronicle chairman Venkattram Reddy in bank case

T Venkattram Reddy, Chairman of Deccan Chronicle Holdings Limited, has been arrested by the sleuths of the Central Bureau of Investigation (CBI) here today in a case relating to fraudulent banking.

The owner and publisher of Deccan Chronicle and earlier promoter of Indian Premier League team Deccan Chargers, is facing number of cases both civil and criminal with regard to funds the company raised to meet its investment requirements, including for the IPL team, a retail business run under Odyssey and an aviation venture.

According to sources, a CBI team from Bangalore questioned Reddy on various issues relating to transactions he had made with Canara Bank. He was then arrested and taken away from the office premises of Deccan Chronicle newspaper located in Secunderabad.

The cash-strapped Deccan Chronicle Holdings Limited had indiscriminately borrowed from a number of banks, pledging the same titles. It is estimated that the company had piled up a debt of over Rs. 4,000 crore and is facing a number of civil claims.

Some of the properties have already been attached and the company shares pledged have been taken away by lenders. These include SREI and ICICI Bank.

Known for his ostentatious life style, he owned a fleet of luxury cars. Apart from being a Steward at Hyderabad race Club, he sponsors horse racing.